The parties have a preexisting relationship. In addition to the lease at 68 South Service Rd., Reckson signed a lease renewal with Citibank for approximately 109,000 sf at Stamford Towers in Connecticut. Last year, the REIT completed a 1.4-million sf sale-leaseback with the banking concern at One Court Square in Long Island City.
Reckson completed 68 South Service Rd. office building during the fourth quarter. The firm invested approximately $61 million on the endeavor. Additional details of the leasing transaction were not available at deadline.
During the Deutsche Bank Securities 2006 Real Estate Outlook yesterday afternoon, Scott Rechler, Reckson's president and chief executive officer, called Long Island a "very, very strong market. Long Island has great supply and demand characteristics."
Rechler adds that the accelerated lease-up of 68 South Service Rd. "validates our ability to exceed expectations as we execute our value creation strategy." The REIT currently has a value creation pipeline with approximately $150 million of active ground-up development projects and approximately $350 million of active redevelopment/repositioning projects. The site is adjacent to the firm's 58 South Service Rd., which is 96% occupied and completes the three-building 711,000-sf Reckson Executive Office Park.
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